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scarlettohara51

Level 2

Question

ssdi and retirement

Forum|Forum|4 years ago
July 15, 2021
1 reply
0 views

Wanting to pull my small retirement out. How will it effect paying taxes?

Level 15

If you take a Withdrawal it is taxable on your return and may push you into a higher tax bracket and more income can reduce or eliminate some credits you may qualify for and make more of your Social Security Taxable. So be careful. Then there is a 10% Early Withdrawal Penalty if you are under 59 1/2 or under 55 if you left that job. You can lose like up to 50% of it for taxes and penalties for federal and state.

For SS and SSDI

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

scarlettohara51Author

Level 2

It will total at 26,882. So it’s only 1,882 over 25,000. I’m over the age of 59 1/2.